Political Economy Flashcards
Political Economy
- The ways politics and economics interrelate and affect one another
- Interrelationships among individuals, governments, and public policy.
- Public institutions impact on economy
- International political economy (IPE) is the study of how politics shapes the global economy and how the global economy shapes politics.
Theories of Political Economy
Systems
1. Liberalism - Adam Smith
2. Mercantilism- Fredrich List
Communism- Karl Marx
Social Democracy- Edward Bernstein
Economic performance can be measured many ways, The most common indicators include:
Gross Domestic Product (GDP) and Gross National Income GNI, Purchasing Power Parity (PPP)
Inequality: Gini Coefficient
Employment, inflation, and other measures
Fiscal measures
measures of government’s revenues and/or expenditure.
Deflation
decline in the prices of goods and services, associated with depression or economic slowdown.
Hyperinflation
high inflation which erodes the value of money over time.
Inflation
increase in the prices of goods and services.
Neoliberalism
an ideological tendency that favors liberal democracy and market-led development
Privatization
transfer of control of a business, industry, or service from public to private
State interventionism
an approach to market management in which the state plays a central role, not just through enforcing contracts and property rights but through active interventions such as coordinating investment, supplying credit, and in many instances, through the establishment and running of state-owned enterprises
Economic management
stats’ efforts to shape economic performance of their societies, especially in the fiscal and monetary policy.
Causes and Effects:Why Do Welfare States Emerge?
CULTURAL CHANGES
INDUSTRIAL CAPITALISM
MOBILIZATION AND POLITICAL ACTION
INTERNATIONAL LEARNING EFFECTS
